WTW Reports Second Quarter 2024 Earnings

Core Insights - WTW reported a revenue increase of 5% to $2.27 billion for Q2 2024, with organic growth of 6% [6][34][36] - Diluted Earnings per Share (EPS) rose by 55% to $1.36, while Adjusted Diluted EPS increased by 24% to $2.55 [6][12][13] - The company raised its full-year 2024 targets for Adjusted Operating Margin to 23.0%-23.5% and Adjusted Diluted EPS to $16.00-$17.00 [10][12] Financial Performance - Revenue for the six months ended June 30, 2024, was $4.61 billion, up 5% from $4.40 billion in the prior year [34][54] - Operating income for Q2 2024 was $212 million, a 49% increase from $142 million in Q2 2023 [11][57] - Adjusted Operating Income for Q2 2024 was $385 million, reflecting a 22% increase from $315 million in the prior year [11][57] Segment Performance - The Health, Wealth & Career (HWC) segment generated $1.26 billion in revenue for Q2 2024, a 4% increase from $1.22 billion in Q2 2023 [15][36] - The Risk & Broking (R&B) segment reported revenue of $979 million, a 9% increase from $900 million in the prior year [11][36] - Operating margins improved significantly, with HWC at 21.9% (up 360 basis points) and R&B at 20.6% (up 450 basis points) [10][36][70] Cash Flow and Capital Allocation - Cash flows from operating activities were $431 million for Q2 2024, slightly up from $430 million in the prior year [35] - Free cash flow for the first half of 2024 was $361 million, an increase of $11 million compared to $350 million in the same period last year [35] - The company repurchased $200 million of its outstanding shares during the quarter [14] Outlook and Guidance - The company updated its annual cost savings target from approximately $425 million to $450 million [37] - The transformation program costs to achieve are now estimated to be between $1.125 billion and $1.175 billion [37] - The outlook includes a foreign-currency headwind on Adjusted Diluted EPS, projected at $0.05 for 2024 [37]